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Section 20 threshold calculator
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Result
Section 20 consultation is needed
8 of 8 flats would pay more than £250 (the most is £1,500). With these shares, the works could cost up to £2,000 before consultation is needed.
| Flat | Pays | Over the threshold? |
|---|---|---|
| Flat 1 | £1,500 | Yes |
| Flat 2 | £1,500 | Yes |
| Flat 3 | £1,500 | Yes |
| Flat 4 | £1,500 | Yes |
| Flat 5 | £1,500 | Yes |
| Flat 6 | £1,500 | Yes |
| Flat 7 | £1,500 | Yes |
| Flat 8 | £1,500 | Yes |
How the threshold works
The test is what each leaseholder would pay, not the total. Works costing £250 per flat or less, for every flat, don't need consultation; if even one flat would pay more, they do. Include VAT and fees in the cost.
For a contract lasting more than twelve months (a qualifying long-term agreement), the test is whether any leaseholder would pay more than £100 in a year.
Consultation has set stages, and leaseholders get 30 days to comment at each one. If you should have consulted and didn't, you may recover only £250 from each leaseholder, unless the tribunal grants dispensation.
Read our guide to Section 20 consultation for the stages and notices.
Sources
Read next
- GuideSection 20 consultation: a step-by-step guide for self-managed blocksWhen Section 20 consultation applies to major works and long contracts, the thresholds, each notice and deadline, and what happens if you don't consult.
- GlossarySection 20 consultationThe legal process of consulting leaseholders before carrying out works, or signing a contract of more than 12 months, that will cost any one leaseholder more than the set threshold.
- GlossaryQualifying long-term agreementA contract made by or for the landlord (or the company managing the block) for a term of more than 12 months, which needs Section 20 consultation if any leaseholder would pay more than the set amount a year towards it.
- GlossaryDispensationAn order by the First-tier Tribunal excusing a landlord or management company from some or all of the Section 20 consultation requirements, where it is reasonable to do so.